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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (40164)	11/19/2010 2:56:07 PM
From: Mattyice	Read Replies (3) \| Respond to of 78467

EKS, Knowing you like covered calls, and though i have only done 1 in my long investment lifetime (which worked out with intel!!) i am interested doing more in more core large cap positions. I found this article somewhat interesting, Goldman Sachs top 50 buy write covered call list for goldman sachs. There is alot of names i wouldnt touch with ten foot poll and i have not bought anything the last few weeks taking risk off the table except some put options on few different names. Here's the list: Goldman Sachs recommended using the “buy-write” strategy on the following stocks: MGM Resorts International Aruba Networks Inc. Salesforce.com Inc. CF Industries Holdings, Inc. E*Trade Financial Corp. Consol Energy Inc. Abercrombie & Fitch Huntsman Corp. Joy Global Inc. Marriott International Textron Inc. Williams Cos. Starwood Hotels & Resorts VMware Inc. Freeport-McMoRan Copper & Gold Inc. International Paper Company Cummins Inc. Peabody Energy Corp. Hansen Natural Corp. Cameron International Corp. Blackstone Group L.P. Carnival Corp. Priceline.com Inc. Marvell Technology Group Ltd. Simon Property Group Kohl’s Corp. Medco Health Solutions Vale Nasdaq Stock Market Inc. Precision Castparts Corp. D.R. Horton Inc. Oracle Corp. Mastercard Inc. Halliburton Co. Bank of America Corp. Lam Research Corp. KLA-Tencor Ensco International Plc. Lowe’s Companies Inc. Visa Inc. Texas Instruments Inc. Staples Inc. General Electric Co. Adobe Systems Inc. Qualcomm Inc. Linear Technology Corp. Broadcom Corporation United Technologies Corp. Analog Devices Inc. Walt Disney Co. What is interesting is most of these stocks are pretty volatile growth stocks with high PE's. I dont see how they justify having some of these as part of a long term strategy except for a few. Then again they are looking at next May, not very long term.

To: E_K_S who wrote (40164)	11/19/2010 4:23:03 PM
From: Grantcw	Read Replies (1) \| Respond to of 78467

E_K_S, I like your covered call strategy. I'm just starting covered calls with a portion of my portfolio and I've liked both your buy-writes here in GST and GMXR. When you've wrote the calls, did you do it as a buy-write when you bought the stock, or did you buy the stock first and watch it move up a bit? I've noticed that on GST you got your call sold at the ask and your GMXR was at favorable pricing between the bid and ask. I think with these two stocks it's a good play as it protects you against any medium-term drop in NG while still giving you good return potential if called away. I've got some shares in SD in the low 5's and I'm considering writing writing calls at 6 in March or June for decent premiums. I'm waiting for more of a run-up in SD though if I can get it. Thanks, cwillyg